Abstract
The main objective of the study is to determine the profitability of listed manufacturing companies in Sri Lanka. In order to meet the objectives of the study, data were collected from secondary sources mainly from financial report of the selected companies, which were published by Colombo stock exchange in Sri Lanka. The results revealed that the profitability of manufacturing companies is less satisfactory. On the basis of result and analysis, selected manufacturing companies has different ranking based on each profitability indicators such as Gross Profit Ratio (GPR), Operating Profit Ratio (OPR), Net Profit Ratio (NPR), Return on Investment (ROI), and Return on Capital Employed (ROCE). Based on the Gross Profit Ratio, Operating Profit Ratio, Net Profit Ratio, ROYAL CHERAMIC PLC is at first whereas CHEVRON LUBRICANTS PLC is at first based on ROI, ROCE. Outcome of the study is beneficial to academicians, policy makers, practitioners and so on. DOI: <a href="http://dx.doi.org/10.4038/jm.v8i1.7556">http://dx.doi.org/10.4038/jm.v8i1.7556</a> <p class="p0">Journal of Management 2013 8(1): 42-50
Highlights
Profit is the primary objective of a business (Nimalathasan, 2009)
Comparison of profitability of the manufacturing companies is measured in terms of the important ratios such as Gross Profit Ratio (GPR) Operating Profit Ratio (OPR) Net Profit Ratio (NPR) Return on Investment (ROI) Return on Capital Employed (ROCE) Gross Profit Ratio
In order to meet the objectives of the study, data are collected from secondary sources mainly from financial report of the selected companies, which were published by Colombo stock exchange in Sri Lanka
Summary
In point of view of the heavy investment which is necessary for the success of most enterprises. Profit in the accounting sense tends to become a long term objective which measures the success of the product, and of the development of the market for it. It is determined by matching revenue against cost associated with it. An enterprise should earn profits to survive and grow over a long period of time. It provides evidence concerning the earnings potential of a company and how effectively a firm is being managed. Capital invested is eroded and if this situation prolongs the enterprise ceases to exist
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